On December I, Year 1, Traylor Company sells $100,000 of short-term trade receiv- ables to Main Street Bank for $98,000 in cash by guaranteeing to buy back the first $15,000 of defaulted receivables. Traylor's historic rate of noncollection on receiv- ables is 5 percent. Traylor notifies the customers affected that they should make pay-
On December I, Year 1, Traylor Company sells $100,000 of short-term trade receiv- ables to Main Street Bank for $98,000 in cash by guaranteeing to buy back the first $15,000 of defaulted receivables. Traylor's historic rate of noncollection on receiv- ables is 5 percent. Traylor notifies the customers affected that they should make pay-
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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